Mortgage help when over 55

DE_612183

My understanding is this:

Prop1 - is right to buy, now bought outright and will be sold in 4 years, but is being rented to son - no issues here.
Prop2 - is mortgage and will be lived in - as it's first mortgage not sure if you qualify for any first time buyer reductions - either with mortgage or stamp duty - you will need to declare property 1 to the mortgage lender for property 2 - only they will tell you if they like that idea or not.

Prop 2 will be your 2nd property so you may have to pay higher rate stamp duty.

MEM62

kingstreet said:

Unless I'm going mad, the OP is looking to let a mortgage-free property and to buy a new property to reside in. Why is a BTL mortgage being mentioned? Are we assuming the current property is to be remortgaged?

As I read it the OP was going to put an interest free mortgage on the home she already owns.  Perhaps that is not the case.   

DE_612183

MEM62 said:

kingstreet said:

Unless I'm going mad, the OP is looking to let a mortgage-free property and to buy a new property to reside in. Why is a BTL mortgage being mentioned? Are we assuming the current property is to be remortgaged?

As I read it the OP was going to put an interest free mortgage on the home she already owns.  Perhaps that is not the case.   

No, the mortgage is for the new home - not the one thats been bought

hereforhelp2022

Thanks for the advice everyone.

Little context to stop the confusion: I’m not moving abroad I plan to stay in the UK.

The RTB will be mortgage free and will be sold in 4 years time. My son will be residing in the property whilst he saves for a mortgage himself (personally I don’t think it unethical to sell an RTB to make profit considering I’ve lived in the property 25 years and I’ve made many improvements to the building. Isn’t RTB designed to help people get on the property ladder. I’m likely to resell to the council anyway as they have first refusal. It’s in an area in high demand so I can’t see any issues there)

I just want some advice on what’s the best way to mortgage a new home whilst I wait 4 years to sell my RTB. Would interest only or repayment be a good option considering my age? 

silvercar

hereforhelp2022 said:

Thanks for the advice everyone.

Little context to stop the confusion: I’m not moving abroad I plan to stay in the UK.

The RTB will be mortgage free and will be sold in 4 years time. My son will be residing in the property whilst he saves for a mortgage himself (personally I don’t think it unethical to sell an RTB to make profit considering I’ve lived in the property 25 years and I’ve made many improvements to the building. Isn’t RTB designed to help people get on the property ladder. I’m likely to resell to the council anyway as they have first refusal. It’s in an area in high demand so I can’t see any issues there)

I just want some advice on what’s the best way to mortgage a new home whilst I wait 4 years to sell my RTB. Would interest only or repayment be a good option considering my age? 

Interest only would be an option. When asked by the lender for the method of repayment then either sale of another property or sale of the mortgaged property should be acceptable. Interest only would mean lower mortgage payments.

the issue I can see is that RTB is for people to live in the properties they have bought, so I don’t know what the position would be if you were buying with no intention of living in it.

sammyjammy

silvercar said:

hereforhelp2022 said:

Thanks for the advice everyone.

Little context to stop the confusion: I’m not moving abroad I plan to stay in the UK.

The RTB will be mortgage free and will be sold in 4 years time. My son will be residing in the property whilst he saves for a mortgage himself (personally I don’t think it unethical to sell an RTB to make profit considering I’ve lived in the property 25 years and I’ve made many improvements to the building. Isn’t RTB designed to help people get on the property ladder. I’m likely to resell to the council anyway as they have first refusal. It’s in an area in high demand so I can’t see any issues there)

I just want some advice on what’s the best way to mortgage a new home whilst I wait 4 years to sell my RTB. Would interest only or repayment be a good option considering my age? 

Interest only would be an option. When asked by the lender for the method of repayment then either sale of another property or sale of the mortgaged property should be acceptable. Interest only would mean lower mortgage payments.

the issue I can see is that RTB is for people to live in the properties they have bought, so I don’t know what the position would be if you were buying with no intention of living in it.

OP has already bought the RTB but is still in the five year period before they can sell.